As subscribers know, the world is deleveraging and deflating. Some of this is rubbing off on the US, and as a result the Dow Jones Averages are being hit. The euro, which has been sold or shorted by everyone, became oversold and is now rallying. The higher euro has resulted in a lower dollar and the lower dollar has been bullish for gold. As I write 40 minutes before the close, spot gold is selling at 1230.1, up over $25.
With stocks sliding and the dollar declining, where is the new safe haven? The safe haven is the safest currency of all, mainly gold.
Even gold haters are deciding that maybe a little position in physical gold makes sense. In the crazy world, gold remains at the bottom of the monetary pyramid. Gold is cheap; it’s hated, and many traders are short the precious metal
The bull market that started in 2009 will sooner or ... Log in or subscribe to continue reading.